“But surely giving discounts is a good thing?”
I’m down in Dorset with my Mum; we’re walking her dog. She’s asking about my work and what I’m teaching these days. I’m explaining about pricing and the importance of not giving discounts and she gets curious. Why not?
I love metaphor, so I look out across the landscape. The trees… The fields… The blackberries… What can I use to help me explain?
Bingo! — Bungle
“Okay,” I say, pointing to her black Labrador. “What colour is Bungle?”
“Black,” she replies, no trace of indecision.
“So, you know the certainty with which you said that?” I ask. “Pricing – the way I teach it – works like that.” I explain that with pricing, it’s about seeing the price of your product or service right there in front of you, as a matter of fact.
There’s no question mark. You don’t have to defend or justify the price; it just is.
I ask Mum if she could be persuaded otherwise. “How about if someone said, ‘Hmm… I’d like to look at your dog, but I’d like him to be brown.’ Could you make Bungle brown?”
Mum laughs. She says no, of course, and that she’d tell them to go and look elsewhere.
Like dogs, like prices
The same principle applies to pricing. If your price isn’t the right fit for someone, they can go and look elsewhere. (Of course, they won’t find you elsewhere – which is why pricing isn’t about comparison or “market rates”).
“Now,” I continue, “try saying ‘Bungle is brown’. How does it feel?”
Mum tries it. “Weird,” she responds immediately. “I mean, it’s not true.”
Once you’ve set the right price for your product or service, a discount would be a lie. It’s not true, it’s not the price.
A black dog is a black dog. Your price is your price
Find something in your view right now. Your laptop, a window, a pen – whatever. What colour is it? What shape is it? Say these facts out loud. How does that feel? Now, try saying something that’s untrue. Say that your laptop is turquoise or your window is hexagonal. How does that feel?
Now, state your price. Say it out loud to the air in front of you and feel it carrying the same quality – of truth. It’s just what is.
Remember this feeling when it comes to speaking about your price with others. Speak your price as a fact, not as something to explain or justify or apologise for.
Forget about discounts and get on with doing your great work.
Over to you
I want to know what you think. What does your pricing currently feel like? Have you ever given a discount – and regretted it? What did you learn? Leave a comment below, let us know.
Prices that feel right
Discover how to set just-right prices; click here to find out about the Turn Your Passion to Profit course.
P.S. PASS IT ON!
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© Corrina Gordon-Barnes 2013